Efforts to rein in fraud in federal cellphone program still in limbo | jacksonville.com

ATLANTA | Georgia regulators’ efforts to crack down on fraud in a federal program that provides free cellphones to the poor remains in limbo.

Nicknamed the Obama Phone by supporters and detractors, the Lifeline Telephone Assistance Program that dates back to the Reagan era and uses taxes on phones to fund the national program, with limited oversight by state regulators. The goal is to help people find work and take care of other personal affairs who cannot afford what has become a necessity of modern life.

For 68-year-old Aaron Williams of Savannah, one of 740,000 Georgians with a free phone, it saves him from having to take buses all over town to take care of personal business face to face.

“It helps a lot. One time, I didn’t have it, and I had to go all over the place. … It saves me a trip,” he said, adding that he couldn’t afford it if he had to pay even $5 each month.

The Georgia Public Service Commission is considering ways to rein in alleged cases of duplicates or outright fraud. Commissioner Doug Everett put a motion before the five-man panel last year to require phone companies to charge $5 monthly.

The commission was prepared to vote June 18 but decided instead to postpone action 90 days while the Georgia Department of Human Services tests letting one phone company access its database of beneficiaries. While people can get the phones if their income is less than 135 percent of the federal poverty level — or about $15,500 for an individual — they can also qualify if they get benefits like Medicaid, welfare or food stamps administered by the department.

via Efforts to rein in fraud in federal cellphone program still in limbo | jacksonville.com.